After the removal of the federal government’s petrol subsidy, which led to an exponential rise in product prices across the country, Nigeria’s transportation industry will soon begin to feel some relief.
Elder Chinedu Okoronkwo, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that the organization is fully prepared to introduce compressed natural gas (CNG) as an alternative fuel for automobiles. The association plans to sell CNG for between N100 and N110 per liter by the end of June.
Okoronkwo confirmed this on Monday’s Business Morning show on Channels Television and emphasized that CNG has emerged as an alternative to gasoline.
Okoronkwo stated, “Very soon, we will roll out,” adding that CNG would assist in lowering the country’s energy costs. We are 90% of the way there, which will also reveal many possibilities.
He noticed that fuel endowment expulsion had diminished the speed with which Nigeria might have gotten another energy blend
“IPMAN has carried help to a great deal of families. The IPMAN president stated, “We have the utilization of our natural energy, CNG, to power vehicles, generators, and even cooking.”
Since natural gas would not be imported, the country’s exposure to fuel imports is expected to be significantly reduced by the CNG.
Okoronkwo said that CNG-powered cars started to gain popularity in the country because people were more aware of how efficient they are and how cheap they are compared to traditional fuels like diesel and gasoline.
“The government will assist, provide relief, and create job opportunities if it accepts what we are saying.
“What we want the public authority to do is make the market. The IPMAN president stated, “The demand exists.”
He also said that IPMAN had gotten a lot of support from businesses in other countries.
He stated, “I don’t know if you have seen what is trending this week where people with their I-pass-my-neighbor generators are beginning to use liquified petroleum gas,” referring to the benefits that CNG provides to the value chain. Natural gas, on the other hand, costs less than N100 to N110 per kilogram, while LPG costs close to N700 per kilogram.
The cost of food will go down as a result of people coming from the hinterlands bringing food to the cities, as you can see from the impact analysis. They need about N1.2 million to fuel trucks with diesel from Kano, but using CNG will cost them between N150,000 and N200,000. Around 1,000,000 naira is saved that will mean less expensive food and open up a great deal of different organizations.
“It will provide less expensive energy for driving the processing zones, such as the agro-based industries, where the gas will also have a significant impact.
“CNG doesn’t supplant PMS, however it is a decision. We’re talking about something that won’t make your purse bigger but will help it.
According to Shuaibu Bello, director of Gas Analytics and Solutions Limited, who also addressed the audience at the Channels Television program, the CNG will revolutionize Nigerian life.
“This is the most effective treatment you can offer the nation. When you talk about palliative care, you’re not just giving people money; you’re also making a system that will help both the rich and the poor.
He stated, “You will still have a reduction if you compare CNG price at N110 per litre with petrol now at N540 or its former price of N185.”
In a letter sent to the Finance Ministry in April 2023, IPMAN requested that the Central Bank of Nigeria (CBN) release a N250 billion intervention fund for the National Gas Expansion Programme (NGEP).
IPMAN explained that it requested that the fund grant truck, commercial tricycle, and vehicle owners access to loans to finance the purchase of natural gas conversion kits.
IPMAN stated at the time that it had collaborated with Gas Analytics & Solutions Limited to co-locate natural gas dispensers within their Nigerian network of more than 30,000 filling stations.
As per IPMAN, it controls more than 80% of the downstream oil area, and accordingly, the collocation model would assist with decreasing the openness in building new filling stations.
In a similar vein, Biodun Lawal, manager of corporate communications at NipCo, stated, when asked about the company’s desire to discourage investment in the gas sector, that the savings that will result from the elimination of subsidies provide additional opportunities to fund the nation’s enormous deficit in gas infrastructure.
“We are still investing more infrastructure with the expectation that customer demand will fluctuate. Some of the obstacles in harnessing the nation’s abundant gas resources include a lack of pipelines to transport gas across the country, the cost of converting to use gas as auto fuel, and access to gas through gas stations.
He stated, “NIPCO gas Limited is the only company with over 12 CNG get to get gas for motorists with all modesty.”
Lawal went on to say that motorists can now see the inherent advantages of using gas instead of fossil fuels, which the government has graciously subsidized in the past, even at the expense of the nation’s overall economic growth and other socio-economic development.
As per him, CNG as a favored option in contrast to petroleum is really great for gas organizations as the country on the loose as or offered genuine chance of setting out greater business open doors ,better worth creation in the Business ,better use of the supplied gas assets of the nation .
He said, the advantages are gigantic for driver as far as reserve funds and life expectancy of such cars and that the change cost ought not be a disadvantage with help from government particularly with monetary strategies to urge financial backers to go into packs fabricating and subordinate things like chambers and so on .
“In the meantime strategies can be set up for exclusion from tolls of imported frill forthcoming when the climate will be made more favorable for it’s assembling in Nigeria CNG business has a decent skyline in the country with the difficulties attached head-first
Lawal, said as trailblazers NipCo gas, is anticipating more advances in the area.